Oil prices steady, on track for biggest yearly rise since 2016

Oil prices held steady on the final day of the year on Tuesday, heading for their biggest annual rise since 2016, supported by a thaw in the prolonged US-China trade dispute and supply cuts.

Brent crude futures for March delivery, the new front month contract, were at $66.66 a barrel, down 1 cent, by 0258 GMT. Brent for February delivery closed on Monday at $68.44.

US West Texas Intermediate (WTI) crude for February was down 3 cents at $61.65.

Brent has gained about 24% in 2019 and WTI has risen roughly 36%. Both benchmarks are set for their biggest yearly gain in three years, backed by a breakthrough in US-China trade talks and output cuts pledged by the Organization of Petroleum Exporting Countries (OPEC) and its allies.

The White House's trade adviser said on Monday that the US-China Phase 1 trade deal would likely be signed in the next week.

Looking ahead, US crude inventories are expected to fall by about 3.2 million barrels in the week to Dec.27, heading for a third consecutive weekly fall, a preliminary Reuters poll showed on Monday. US stockpiles fell by 5.5 million barrels in the week to Dec. 20. The figures will be released on Friday.